MIRA INFORM REPORT

Report Date :

28.07.2008

IDENTIFICATION DETAILS

Name :	SANJAY CHEMICALS (INDIA) PRIVATE LIMITED
Registered Office :	507-508 Matru Chhaya, 378/380 Narsi Natha Street, Mumbai – 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.10.2000
Com. Reg. No.:	11-129290
CIN No.: [Company Identification No.]	U51434MH2000PTC129290
TAN No.: [Tax Deduction & Collection Account No.]	MUMS27686B
Legal Form :	Private Limited Liability Company
Line of Business :	Supplier of Chemicals, Pharmaceuticals and Minerals

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are correct and as per commitments. The company can be considered good for normal business dealings. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	507-508 Matru Chhaya, 378/380 Narsi Natha Street, Mumbai – 400009, Maharashtra, India
Tel. No.:	91-22-23432291/ 23449321
Fax No.:	91-22-23415715
E-Mail :	sanjaychem@vsnl.com sanjay_bhagwan@yahoo.co.in
Website :	http://www.sanjaychemindia.com

DIRECTORS

Name :	Mr. Dilip V. Parmar
Designation :	Managing Director
Address :	Ooranwala Mansion, 1st Floor, Dr. Ambedkar Marg, Parel, Mumbai – 400012.
Date of Birth/Age :	14.03.1964
Date of Appointment :	20.10.2000
Name :	Mr. Vijayraj M. Parmar
Designation :	Director
Address :	Ooranwala Mansion, 1^st Floor, Dr. Ambedkar Marg, Parel, Mumbai – 400012.
Date of Birth/Age :	13.03.1944
Date of Appointment :	20.10.2000
Name :	Mr. Manoj V. Parmar
Designation :	Director
Address :	Ooranwala Mansion, 1^st Floor, Dr. Ambedkar Marg, Parel, Mumbai – 400012.
Date of Birth/Age :	14.03.1968
Date of Appointment :	20.10.2000
Name :	Mr. Sanjay V. Parmar
Designation :	Director
Address :	3 Ooranwala Mansion, 1^st Floor, Dr. Ambedkar Marg, Parel, Mumbai – 400012.
Date of Birth/Age :	04.03.1974
Date of Appointment :	20.10.2000

KEY EXECUTIVES

Name :	K. S. and Associates
Designation :	Company Secretary
Address :	Mumbai

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 29.09.2005)

Names of Shareholders	No. of Shares
Mr. Vijayraj M. Parmar	208465
Mr. Dilip V. Parmar	235025
Mr. Sanjay V. Parmar	202224
Mr. Manoj Parmar	180724
Advance Technologies Limited	150000
Soni Infosys Limited	15000

(As on 02.11.2006)

Names of Allottes	No. of Shares Allotted
Mr. Vipul Manoharji Palrecha	1000

(As on 31.03.2007)

Category	Percentage
Bodies Corporate (not mentioned above)	16.63
Directors or relatives of directors	83.37
Total	100.00

BUSINESS DETAILS

Line of Business :	Supplier of Chemicals, Pharmaceuticals and Minerals
Products:	Bulk Drugs Chemicals Drug Intermediate Organic Chemicals

GENERAL INFORMATION

No. of Employees :	30
Bankers :	Development Credit Bank Limited Mohamad Ali Road Branch, Mumbai – 400001, Maharashtra, India 154 S. V. Road East, Dongri, Mumbai – 400009, Maharashtra, India Development Credit Bank Limited, Secunderabad HDFC Bank, Mumbai
Facilities :	Rs.21.000 millions w.e.f. 20.04.2001 against hypothecation of the whole of the movable property of the company. Rs.1.500 millions w.e.f. 21.01.2002 against hypothecation of tangible movable property.

Banking Relations :	Satisfactory
Auditors :	MGB and Company Chartered Accountants
Address:	Jolly Bhavan 2, 1^st Floor, 7, New Marine Lines, Churchgate, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-56332330

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1050000	Equity Shares	Rs.10/- each	Rs.10.500 millions
95000	Preference Shares	Rs.100/- each	Rs.9.500 millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
991700	Equity Shares	Rs.10/- each	Rs.9.917 millions
32907	Preference Shares	Rs.100/- each	Rs.3.291 millions
	Total		Rs.13.208 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		13.208	14.148	11.908
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		65.795	67.984	47.126
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		79.003	82.132	59.034
LOAN FUNDS
1] Secured Loans		5.998	3.841	6.468
2] Unsecured Loans		55.408	34.342	17.787
TOTAL BORROWING		61.406	38.183	24.255
DEFERRED TAX LIABILITIES		0.165	0.000	0.000
TOTAL		140.574	120.315	83.289
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.237	2.465	1.815
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.088	1.763
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	119.118	79.115	38.797
	Sundry Debtors	475.433	284.157	243.805
	Cash & Bank Balances	18.319	9.866	8.682
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.225	13.424	5.207
Total Current Assets		629.095	386.562	296.491
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	488.643	262.461	212.501
	Provisions	4.115	6.339	4.305
Total Current Liabilities		492.758	268.800	216.806
Net Current Assets		136.337	117.762	79.685
MISCELLANEOUS EXPENSES		0.000	0.000	0.026
TOTAL		140.574	120.315	83.289

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		1719.364	1181.610
Other Income		0.000	0.000
Total Income		1719.364	1181.610
Profit/(Loss) Before Tax		6.952	4.408
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		6.952	4.408
Expenditures:
	Interests	10.162	7.296
	Depreciation & Amortization	0.311	0.250
	Other Expenditure	1701.939	1169.656
Total Expenditure		1712.412	1177.202

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.40	0.37	NA
Net Profit Margin (PBT/Sales)	(%)	0.40	0.37	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.10	1.13	NA
Return on Investment (ROI) (PBT/Networth)	(%)	0.09	0.05	NA
Debt Equity Ratio (Total Liability/Networth)	(%)	7.01	3.74	4.08
Current Ratio (Current Asset/Current Liability)	(%)	1.28	1.44	1.37

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company	SANJAY CHEMICALS (INDIA) PRIVATE LIMITED
Presented By	Development Credit Bank Limited, Credit Administration Dept. Bandra (west), Mumbai – 400050.
1) Date and description of instrument creating the change	Deed of Hypothecation Dated 30.03.2005
2) Amount secured by the charge/amount owing on the securities of charge	Nature Facility Amount Cash Credit (Adhoc) Rs.2.500 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The Whole of the movable properties of the borrower its movable plant and Machinery, Machinery spares, tools and accessories furniture and fixture, stocks in trade finished goods, goods in progress, raw materials, book debts and receivable actionable claims amounts due and receivable under any contract or Otherwise and all other current assets and movable both present and future whether installed or not and whether now lying loose of in cases or which are now lying or stored in or about all the borrower factories, premises and godowns or wherever else the same may be or be held by any party to the order of disposition of the borrower in the course of transit or on high seas or on order, or delivery, howsoever and where so ever in the possession of the borrower and either by way of substitution or addition and secured by way of hypothecation of stock and book debts and charge on all current assets.
4) Gist of the terms and conditions and extent and operation of the charge.	Margin: 40% Interests/ Commission: 3% over PLR Min 16.00% p.a. Repayment: On Demand by 30.4.2004
5) Name and Address and description of the person entitled to the charge.	Development Credit Bank Limited, Credit Administration Dept. Hill View Apartment, No.2, Ground Floor, Opposite Mehboob Studio Hill Road, Bandra (west), Mumbai – 400050, Maharashtra, India
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

Corporate identity number of the company	U51434MH2000PTC129290
Name of the company	SANJAY CHEMICALS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	507-508 Matru Chhaya, 378/380 Narsi Natha Street, Mumbai – 400009, Maharashtra, India
This form is for	Book Debts Movable Property
Type of charge	Development Credit Bank Limited, 301, Trade Plaza, 414 Veer Savarkar Marg, Prabhadevi, Br. 8 Raja Bhadur Mansion Fort, Mumbai – 400001, Maharashtra, India CIN No.: L99999MH1995PLC089008 Email: vijaykurankar@dcbl.com
Particular of charge holder	Supplemental Deed of Hypothecation Dated 12.06.2007
Nature of instrument creating charge	12.06.2007
Date of instrument Creating the charge	Rs.266.000 Millions
Amount secured by the charge	Rate of Interests: Cash Credit – BPLR – 3.5% min – 13.755 p.a. Wae/ Intra Day – BPLR 3.5% Min – 13.755 P.a. Import/Inland Letter of Credit – ANN – I Terms of Repayment: Cash Credit – On Demand/ Annual Review Wae/ Intra Day – On Demand/ Annual Review Import/Inland Letter - On Demand/ Annual Review/ On retirement of LIC Margin: Cash Credit – 40% Wae/ Intra Day – Nil Import/Inland Letter – 10% by way of TDR Extent and Operation of the charge: The charge is operative and modified to rs.266.000 Millions and the charge is secured by book debts and the movable properties
Particulars of the property charged	The Whole of the movable properties of the borrower including its movable plant and Machinery, Machinery spares, tools and accessories furniture and fixture, stocks in trade finished goods, goods in progress, raw materials, book debts an other moveable Ann- II
Particulars of the present modification	By this present modification the limit is increase to Rs.266.000 Millions and the charge is further secured by the whole of the properties of the borrower including its movable plant and Machinery, Machinery spares, tools and accessories furniture and fixture, stocks in trade Ann III

Fixed assets

• Office premises
• Office equipments
• Air conditioners
• Furniture and fixtures
• Vehicles
• Computers

 Website Details

 Profile

Founded in 1977, Subject has grown to a broad-based supplier of chemicals, pharmaceuticals and minerals to virtually every industry that requires them.

Their activities include agency arrangements, trading operations and joint ventures. They even serve as purchasing agents of specialty products for certain major corporations, where they have proven to be more cost effective than their own in-house operations.

Company is a trade enterprise specialized in the import and export of materials of fine chemicals. The company deals with 100,000 Mts of chemicals annually, including 100,000 Mts of bulk chemicals, having the annual sale income up to 700.000 Millions INR.

Their company sticks to the management tenet of "Excellent Services, Quality Paramount", actively expands domestic and foreign market and enjoys high reputation with strong force in chemical trading field. Since its foundation, the company has imported a large number of excellent chemicals from all over the world and established long-term and friendly cooperation relationship with its suppliers.

During the long-term cooperation with foreign traders, they develop their reputation depending on their strong strength, paying great attention to credit and business moral, and taking full advantage of the market preponderance, and continuously marching new field. They enjoy high praise and trust in the business and are the best partner of foreign suppliers in India. Meanwhile, sticking to credit and sincerity, they actively contact domestic enterprise to cooperate with them to guarantee the long-term and stable supply of chemical material, at the same time, they provide them with their service of sale and export for their products.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.23
UK Pound	1	Rs.83.88
Euro	1	Rs.66.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions